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The Effect of Defense Agency Funding of University Research on Regional New Venture Creation
Author(s) -
Plummer Lawrence A.,
Gilbert Brett Anitra
Publication year - 2015
Publication title -
strategic entrepreneurship journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 5.061
H-Index - 46
eISSN - 1932-443X
pISSN - 1932-4391
DOI - 10.1002/sej.1199
Subject(s) - agency (philosophy) , funding agency , business , venture capital , strategic management , tacit knowledge , start up , management , business administration , economics , marketing , public relations , finance , political science , sociology , knowledge management , social science , computer science
This study explores the effects of defense agency funding of university research on regional new venture creation. We argue that ‘closed’ university research may constrain the direct flow of new knowledge into the entrepreneurial process, but does not restrict more tacit and indirect flows of university research. We find a negative (positive) effect of the defense share of university research funding on short‐term (long‐term) regional start‐up rates. This may indicate that while defense‐funded research may not seed start‐ups directly, the knowledge carried into the private sector through more indirect channels may contribute, albeit slowly, to regional entrepreneurial activity. Copyright © 2015 Strategic Management Society.